Amazon apparently has reason to be worried. Since debuting last month, Google's new Nexus 7 tablet has garnered rave reviews for its rock-bottom price and fast performance, and has sold-out at many physical stores carrying the device. It's in direct competition with Amazon's own Kindle Fire tablet, released last year with a similarly low price (albeit less powerful innards), and the Nexus IS already having an impact.
According to the good folks at CNET, analyst Kevin Kopelman (Cowen Group Inc.) has slashed his revenue forecasts for Amazon -- down 2% this year and 3% next year -- and cut sales figures for the Kindle Fire. Sales are predicted to drop from 14 million to 12 million, with the Nexus 7 cited directly as a cause.
Rumors of a revised Kindle Fire dropping later this year continue to circle, with Amazon remaining tight-lipped on any potential specs. Anything less than those of the Nexus 7, though, and Amazon could be in trouble.
Get the latest technology updates in your inbox. Join our mailing list.